All the Following Are Reasons to Outsource an Organizational Function

question 46

Multiple Choice

All the following are reasons to outsource an organizational function EXCEPT

• A) the function is noncore to the organization.
• B) another firm has greater economies-of-scale and can provide the service cheaper.
• C) the organization does not have employees with the necessary skills to perform the function.
• D) the function has legal compliance issues that the organization can push "downstream" to the outsourcing company.

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Definitions:

Nash Equilibrium

In game theory, the equilibrium that results when all players choose the action that maximizes their payoffs given the actions of other players, ignoring the effect of that action on the payoffs of other players; also known as noncooperative equilibrium.

Advertise

Advertising involves promoting products or services through various mediums to inform potential customers and influence their purchasing decisions.

Game Theory

A branch of mathematics that studies strategic interactions among rational decision-makers, used to analyze situations in which the outcome depends on the actions of multiple agents.

Payoff Matrix

A table that shows the potential outcomes or payoffs from different decisions or strategies in a strategic or game-theoretic context.